Boeing to slow down airplane productions in 2010April 10th, 2009 - 10:05 am ICT by admin
Seattle, WASHINGTON (BNO NEWS) — Boeing is adjusting its twin-aisle airplane production plans for 2010 “due to significant deterioration in the business environment for airlines and cargo operators driven by unprecedented global economic conditions,” the company announced on Thursday.
Boeing will reduce its monthly production of the 777 from seven to five airplanes beginning in June 2010. It said it will also delay previous plans to modestly increase 747-8 and 767 production, but no change has been made to the 737 production rate. So far, no 767, 747 or 777 orders have been cancelled.
In addition to the adjusted production plan, the weak global economy has contributed to significant declines in the escalation indices that affect forecasted pricing for commercial airplanes already ordered, although the company did not specify further.
“The production decisions and unfavorable price escalation are expected to reduce Boeing’s first-quarter 2009 net earnings by approximately $0.38 per share,” the statement read. The first-qaurter results are expected on April 22.
“These are extremely difficult economic times for our customers,” said Boeing Commercial Airplanes President and CEO Scott Carson. “It’s necessary to adjust our production plans to align supply with these tough market conditions. We are in close contact with our customers as we continue to monitor this dynamic business environment,” Carson added.
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